Common use of Overexpenditures Clause in Contracts

Overexpenditures. Operator shall notify the Participating Parties when it appears that actual expenditures for an approved operation in an Exploratory or Development Well or for the design, construction, and installation of a Platform or Development Facilities will exceed the AFE estimate (the excess being an "Overexpenditure") by more than twenty percent (20%), hereinafter referred to as the "Allowable Variance". Except for Exploratory Well operations after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, Operator's notice shall be forwarded for information only. For an Exploratory Well operation after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, if Operator determines that the Overexpenditure will exceed the Allowable Variance, Operator shall submit a new AFE for the current operation ("Supplemental AFE") for approval of the Participating Parties. The Participating Parties may then elect whether to continue to participate within thirty (30) days or forty-eight (48) hours if a rig is on location, inclusive of Saturdays, Sundays, and federal holidays, after receipt of the Supplemental AFE. If one (1) or more Participating Parties elect to continue to participate in the current operation and agree to pay and bear one hundred percent (100%) of the costs and risks of conducting it, Operator shall continue to conduct the current operation. Otherwise, the operation shall cease. A Participating Party that elects not to continue to participate in the current operation shall become a Non-participating Party in the operation, from and after the date when the Overexpenditure exceeds the Allowable Variance, not including emergency expenditures, and Article

Overexpenditures. Operator shall notify the Participating Parties when it appears that actual expenditures for an approved operation in an Exploratory or Development Well or for the design, construction, and installation of a Platform or (other than a Platform that solely supports Development Facilities Facilities) will exceed the AFE estimate (the excess being an "“Overexpenditure") by ”). If it appears that the Overexpenditure will be no more than twenty the greater of __________ Dollars ($_____) or __________ percent (20___%), or in the case of an operation involving the design, construction, and installation of a Platform, or Development Facilities, no more than the greater of __________ Dollars ($_____) or __________ percent (___%), hereinafter referred to as the "“Allowable Variance". Except for Exploratory Well operations after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, ,” Operator's ’s notice shall be forwarded for information only. For an Exploratory Well operation after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, if If Operator determines that the Overexpenditure will exceed the Allowable Variance, Operator shall submit a new AFE for the current operation ("“Supplemental AFE"”) for approval of the Participating Parties. The Participating Parties may then elect whether to continue to participate within thirty __________ (30___) days or forty-eight __________ (48___) hours if a rig is on location, [ ] inclusive [ ] exclusive of Saturdays, Sundays, and federal holidays, after receipt of the Supplemental AFE. If fewer than all, but one (1) or more Participating Parties elect to continue to participate in the current operation and agree to pay and bear one hundred percent (100%) of the costs and risks of conducting it, Operator shall continue to conduct the current operation. Otherwise, the operation shall cease. A Participating Party that elects not to continue to participate in the current operation shall become a Non-participating Party in the operation, from and after the date when the Overexpenditure exceeds the Allowable Variance, not including emergency expenditures, and Article

Overexpenditures. Operator shall notify the Participating Parties when it appears that actual expenditures for an approved operation in an Exploratory or Development Well or for the design, construction, and installation of a Platform or Development Facilities will exceed the AFE estimate (the excess being an "Overexpenditure") by more than twenty percent (20%), hereinafter referred to as the "Allowable Variance". Except for Exploratory Well operations after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, Operator's notice shall be forwarded for information only. For Except for an Exploratory Well operation after Casing Point on an Initial Test Well or its Substitute Well, as such terms are defined in the Dominion EPA and the Ridgewood EPA, if Operator determines that the Overexpenditure will exceed the Allowable Variance, Operator shall submit a new AFE for the current operation ("Supplemental AFE") for approval of the Participating Parties. The Participating Parties may then elect whether to continue to participate within thirty (30) days or forty-eight (48) hours if a rig is on location, inclusive of Saturdays, Sundays, and federal holidays, after receipt of the Supplemental AFE. If one (1) or more Participating Parties elect to continue to participate in the current operation and agree to pay and bear one hundred percent (100%) of the costs and risks of conducting it, Operator shall continue to conduct the current operation. Otherwise, the operation shall cease. A Participating Party that elects not to continue to participate in the current operation shall become a Non-participating Party in the operation, from and after the date when the Overexpenditure exceeds the Allowable Variance, not including emergency expenditures, and Article